Abstract
This introductory chapter begins by discussing the theoretical and empirical context for the book before moving on to a brief consideration of changes in the policy environment to which innovative firms have been subject. In terms of the latter, particular attention is paid to the roles of foreign direct investment (FDI), trade, and market liberalization. The discussion then turns to a detailed review of the process of innovative capability building, distilling the key findings of what has become a substantial literature. Next, the framework for the analysis is presented. The discussion here sets out — and contextualizes — the main questions to be addressed in subsequent chapters. Finally, the structure of the book is described.